Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook

facebook3           facebook2 


What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


Articles View Hits

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Denise Brailey

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

BFCSA: Superannuation & Derivatives - APRA knows RISKS are "friendly" AUDITORS and zero supervision

Posted by on in Consumers Fight Back
  • Font size: Larger Smaller
  • Hits: 1410
  • Print


Ref No: Audit Report 2009/10
21 December 2010

Guidance: Superannuation trustee obligations when using derivatives

In response to general enquiries, the following additional guidance is provided to Trustees who use Derivatives.

Prior to the introduction of the Superannuation Safety Amendment Act 2004 (SSFA), Superannuation Circular II-D-7 Derivatives i set out the requirements for APRA- regulated Trustees (including Pooled Superannuation Trusts (PSTs) to have a Derivative Risk Statement (DRS) in place which detailed the use of derivatives in the fund(s) and the manner in which the risk of such use was managed.


Subsequently, specific requirements were set out in the SSFA detailing how a Trustee should manage risk, and in particular, the risks to the investment strategy relevant to the fund and the risks to the fund’s financial position.


Section 29P of the Superannuation Industry (Supervision) Act 1993 requires a Trustee to manage its risks through the mechanism of a Risk Management Plan (RMP).   An RMP should set out the matters that a DRS would previously have addressed.

While a DRS is still relevant, Trustees have the alternative option of obtaining an annual written notice from their investment manager(s) which confirms that they have risk management processes in place in relation to the use of derivatives and the purposes for which they are used. The information to be included in such a notice is probably already available to the investment manager (although it may not be in a standardised format).


The guidance section of the Approved form of Auditor’s Report outlines the auditor’s obligations when checking for compliance as follows;

‘the requirement for the auditor to check compliance with r. 13.15A of the SIS Regulations and the guidelines for preparing Derivative Risk Statements (DRS) issued by APRA in Superannuation Circular II.D.7 Derivatives has been removed.


As with other types of investment risks, managing risks associated with a licensee’s investment in derivatives should be integrated into the licensee’s risk management framework and more specifically addressed in the RMP’.


i Superannuation Circular II.D.7 Derivatives was replaced by Superannuation Prudential Practice Guide (SPG) 200 Risk Management in August 2010. Refer to paragraph 16 and 17 of SPG 200 for guidance on derivatives.





Last modified on
Rate this blog entry:


  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Wednesday, 26 February 2020